We’ve been giving this story a wide berth but … someone perspicacious in the White House press corps noticed the yawning chasm between the symbolism of Donald Trump making a stump speech at Mount Airy Resort and the fact of his having signed into law an onerous tax increase on gamblers. The latter was part of a budget enacted in haste, to be repented at leasure. (To be crystal clear, the gambling-tax hike was the evil handiwork of GOP Sen. Mike Crapo.) As might be expected, Fox Business tried to spin the presidential response as a major policy shift. The truth is more mundane.
SBC Americas provided the full context …
“I haven’t been asked that question in a long time. No tax on gambling? We have no tax on tips, we have no tax on Social Security, we have no tax on overtime. No tax on gambling winnings? I don’t know about that,” he said with a laugh and head shake. “I’m going to have to think about that.”
Very different, huh? It us reminds us of Mom’s favorite euphemism for no: “We’ll see.” Even the favorable Fox coverage sounded like an empty promise. “I don’t know about that,” seems to frame an outright rejection. Besides, regardless if Trump ‘thinks about that’ until the cows come home, it’s not up to him. Congress would have to reverse field on the odious levy, which would require the Republican majority in the U.S. Senate, a clubby bunch, to throw Crapo under the bus. Not impossible but highly unlikely. If POTUS were to experience a change of mind and throw his weight upon Capitol Hill, things just might change, given the GOP’s extreme fealty to him. But we’re not staying up nights.
The narrow partisan divide in the House of Representatives provides a glimmer of hope. As does the fact that Big Gaming seems to have come around on an issue about which it’s been shamefully mum up to this point. A Who’s Who of the industry descended upon Washington, D.C. this week. Belatedly advocating for John Q. Gambler were MGM Resorts International CEO Bill Hornbuckle (above), Caesars Entertainment CEO Tom Reeg, Wynn Resorts CEO Craig Billings and Circa mastermind Derek Stevens. They were chaperoned by American Gaming Association President Bill Miller.
When CEOs talk, Congress listens. While only Stevens is a friend of the average gambler, we suspect the others have finally spoken up because they’re getting earful from their larger players, the ones most affected when the Senate took a Crapo on gamblers.
It seems improbable in the extreme that Congress, an unambitious bunch, will take action before the tax increase goes into effect on New Year’s Day. But Rep. Dina Titus (D, above) still hopes to get her bill before the Ways & Means Committee (the pressure point for Big Gaming). In the upper chamber, Sen. Ted Cruz (R) has been peeled off from the majority, joining Sens. Catherine Cortez Masto (D) and Jackie Rosen (D) in sponsoring a rollback of the tax. So there’s a slim chance, although we’d like to see more enlightenment from the majority.
Bottom line: Don’t get excited.
While regional casinos have been generally strong this year, gamblers in Indiana didn’t get the memo. Casino takings fell 5.5% last month (and appeared to stall in neighboring Illinois). One fewer weekend day didn’t help. The entire northern tier got walloped. Hard Rock Northern Indiana fell 8% to $34.5 million, Horseshoe Hammond plunged 12% to $19 million, Ameristar East Chicago faltered 9.5% to $12 million and Blue Chip toppled 10% to $9.5 million. Mid-state Horseshoe Indianapolis slipped 3% to $23.5 million and Harrah’s Hoosier Park slid 8.5% to $17.5 million. Terre Haute Casino dipped 2% to $10 million. The lone gainer in the state was fan favorite Caesars Southern Indiana (pictured), which was up 6.5% to $21 million.
Elsewhere on or near the Ohio River, pickings were slim. At least Belterra Resort was flat at $7 million. Bally’s Evansville was down 3% to $13.5 million. Playing out the string, Rising Star sank 3% to $4 million, while Hollywood Lawrenceburg was off 1.5% to $12 million. French Lick Casino plummeted 12.5% to $5.5 million. Sports betting was flat, with winnings of $69 million on slightly higher handle of $640 million, meaning a tidy 11% hold for the bookies. ESPN Bet bowed out with $2 million, Caesars Sportsbook also made $2 million, BetMGM did $5 million and BetRivers $1 million. Bet365 scared up $3 million, whilst FanDuel outdueled DraftKings, $28 million to $22 million.
Big Trouble Down South. There is an epidemic of illegal gambling in Florida, thanks to the rapid proliferation of unlawful slot arcades. Law enforcement lacks the resources to combat it, but the problem goes deeper than that. We investigated and what we found was not encouraging.
As for no tax on gambling winnings, that is pure fantasy land. As for the new tax, I had thought that it would be repealed by the end of the year. Now I am thinking it will not be repealed. No tax on tips, Social Security, overtime, someone/thing has to pay for that piper. Looks like gambling winnings will be a part of that. I do not see or hear of a concerted effort to repeal it.
“As for no tax on gambling winnings, that is pure fantasy land.”
Totally agree, naive to think otherwise for sure.
I don’t think it will be repealed either. People need to face reality here, it is what it is, nothing stays the same forever in anything as everything is temporary. Sometimes things happen for the best and I’ve found often many don’t realize that until later on in their life. Sometimes not. It’s called reality.